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The big European life insurers owned far too many equities.
Regulations mean that insurance companies need a steady capital base; they cannot afford to own that many equities.
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Because Treasury yields are extremely low, the cash flow of many equity shares is particularly attractive now, he says.
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BP shares rose nearly 2% to 402p with many equity analysts quick to praise BP for deciding to bail out.
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There have been many equity bear markets in history and investors are exposed to the real risk that they will have to sell in the middle of one.
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